MUNCIE, Ind. — Mike Sheffield's father died in his 50's and his mother died at 62.

So, from the time he was 22 years old, he planned to retire when he turned 62.

He taught fifth and sixth grade at Muncie Community Schools for 39 years, moving around to five different buildings: Grissom, Longfellow, Storer and Mitchell elementaries, and Wilson Middle School.

When he turned 62 two years ago, after years of saving and planning, he celebrated his long life and retired, even though he was three years away from qualifying for Medicare.

He did so relying on MCS' early retirement incentive, which has offered retirees between age 55 and 65 — later 58 through 65 — the same insurance plan as active teachers, with MCS covering most of the expense.

Last week he was shocked to read the MCS board effectively ended that incentive for all current and future retirees during Tuesday's meeting, leaving him six weeks to replan his life.

The board voted to no longer contribute any money toward retired teachers' insurance, and to reduce the amount it contributes to non-teaching staff, including administrators. That means insurance costs will rise next year for everyone but teachers, whose rates are still being argued in ongoing negotiations between MCS and the union.

It will affect 143 retired employees currently using MCS insurance, and 152 employees.

For Sheffield, this means he will go from paying $321 per month for full coverage — including his health, dental and vision insurance and supplemental health insurance to his wife's Medicare — to more than $800 per month for only his health insurance.

He could be paying as much as $10,000 a year for his health insurance, thousands more than he had carefully planned. It also means his wife, Jeanell, will likely be left without the coverage she needs for prescriptions for her rheumatoid arthritis.

"People made life decisions... based upon this promise and it's no longer there," Sheffield said. "The humane thing to do is to give people time to prepare for it."

Although board members said this has come up in confidential contract negotiations since April, it was a surprise to the public. No communication went out to retired teachers before the vote.

Board members toyed with the idea of scheduling another meeting later in the month rather than immediately voting, but Superintendent Steven Baule said the insurance company needed to know by the next morning.

"We don't really have a choice," Baule told the board.

Board Vice President Debbie Feick said it was the first time she was seeing the proposed rate table, which was not included in the public agenda packet and only partially projected in the front of the room. Bev Kelley was not present. The board voted "yes" unanimously.

"It makes me very, very sad because I have the greatest respect for those folks, they're my friends and it’s just a horrific sad, situation," Feick said afterwards.

Muncie Schools employees have long enjoyed far better insurance than many other districts or companies offer, which everyone The Star Press talked to acknowledged. According to information Unified Group Services gave Baule, MCS is the only school district that allows retirees to continue on the corporate insurance plan. MCS teachers also pay a smaller portion than nine of the 10 other districts the company analyzed.

Sheffield said in the past teachers would agree to give up pay raises in exchange for continuing with great insurance. He knew about the district's dire financial situation, but said he still never thought his early retirement incentive would be changed, since he took the agreement "in good faith."

Many of those affected questioned whether the decision was legal, especially considering the incentive is in the 2014-15 teachers contract, which still stands until a new one is negotiated. Some posted on social media about meeting with attorneys.

A few retired teachers told The Star Press they would have expected the board to end the incentive moving forward, not retroactively end it for those who already retired. Each year more retirees would have reached age 65, and dropped off the plan, they pointed out.

"We would absolutely prefer to do that, but we can’t afford it," Feick told The Star Press. "We’re talking about meeting payroll. If we could grandfather in these changes, that initially was our objective. And yet as we keep studying the financial picture, it’s really dire."

The changes will save the district about $2 million next year, which is significant because MCS won't be able to take out a $10 million loan as planned. The district only qualifies for $7.8 million.

"We’re committed to looking at reductions where it did not affect students," Feick said. "We’ve been steadfast in that."

Terry Nelson called the administration office Thursday morning after reading about the change in The Star Press. She found out she will go from paying $706 a year for health, dental and vision insurance to about $875 a month for only health insurance.

"That means (retirees) are going to take a hit of almost $10,000 a year, and that is certainly life-changing," she said.

Even though MCS is still offering plans, she feels dropped by the district, because that cost is similar to how much she would pay for insurance as an independent. Most retirees have little chance to change their lifestyle, she said, and low odds of getting a high-paying full-time job.

"This was done without conversation or compromise," she said. "To me it (lacks integrity.) Especially to hit a group of former teachers who were loyal to the school system."

Kim Batt said her husband is 62 and considered retiring, but now won't be able to because she needs to be on his insurance. She has another five years before she qualifies for Medicare. She retired in May, and said she absolutely would not have without the incentive.

MCS is bringing in professionals to help retirees and staff look for other coverage options next week, said spokesperson Ana Pichardo.

From 8-11 a.m. on Thursdays, High Street United Methodist Church brings in volunteers from the State Health Insurance Program (SHIP) to help peope find good coverage options, which retired teachers and staff could use.

"I will forever love Muncie Schools, because Muncie Schools is not just leadership and school board decisions," Nelson said. "There’s more to it, it’s a school that my mother attended and graduated from.

"But it should be a wake-up call to those at the top that everybody is struggling… You just shouldn’t treat people like that."